Cohen & Steers, Inc.

What they do

Cohen & Steers manages open-end funds (including ETFs), institutional accounts, and closed-end funds, focusing on listed and private real estate, preferred securities, infrastructure, resource equities, and commodities. The firm distributes through wealth intermediaries (private banks, wirehouses, RIAs) and institutional clients (pension plans, sovereign wealth funds, endowments). Fees are based on contractually specified rates applied to assets under management, with revenue fluctuating with AUM values.

Revenue drivers

• Wealth channel (open-end funds, ETFs, closed-end funds) — Generates investment advisory, administration, distribution and service fees; revenue is fee-rate based on AUM, with the overall fee rate (ex. performance fees) at 58.5 bps in Q2 2026.
• Institutional channel (advised and subadvised accounts) — Generates fees from managing separate accounts and commingled vehicles for institutional clients; fees based on AUM with possible performance-based fees.
• Active ETFs — A growing product line; launched three strategies in 2025, two more in December 2025, reached over $1 billion AUM in June 2026, and a seventh ETF expected in Q3 2026.

Recent performance

In Q2 2026, revenue was $152.7 million (GAAP), net income $49.3 million, diluted EPS $0.95, and operating margin 34.6%. AUM reached $100.1 billion, with net inflows of $1.3 billion, the strongest quarter since Q4 2021. Average AUM for the quarter was $99.0 billion. Revenue has grown sequentially from $141.7 million in Q3 2025 to $152.7 million in Q2 2026. Annual revenue for 2025 was $556.1 million with net income of $153.2 million.

Strategy

Management is scaling the ETF franchise, which surpassed $1 billion AUM in June 2026, and expects to launch a seventh ETF in Q3 2026. The firm is expanding international distribution, with European listed funds surpassing $2 billion AUM and approvals to market in South Africa. A rights offering for Cohen & Steers Quality Income Realty Fund (RQI) closed July 15, 2026, raising approximately $220 million including leverage. The company emphasizes organic growth, achieving four consecutive quarters of net inflows as of Q2 2026.

Risks

• Market sensitivity — Revenue depends on AUM, which fluctuates with market performance; a downturn in real assets or preferred securities could reduce fees.
• Competition in ETFs — The ETF market is competitive; failure to achieve scale could limit organic growth and fee revenue.
• Redemption risk — Clients can withdraw assets at specified notice periods, and open-end funds allow redemptions daily, potentially reducing AUM and revenue.
• Macroeconomic volatility — Global economic conditions, including AI adoption, private credit conditions, and geopolitical events, could affect investor sentiment and flows.

Outlook

Management expects continued organic growth, citing improving market conditions and investments in expanding capabilities. The company plans to launch the Cohen & Steers Real Assets Active ETF in Q3 2026, adding to its lineup. The rights offering for RQI enhances the fund's capital base, supporting future growth. Executives are optimistic about the secular case for real assets driving demand.